Forget Japan's Stimulus The Big Event Is The BoJ

Yesterday, Japan’s Prime Minister Shinzo Abe announced a much anticipated fiscal package designed to try and pull the country’s economy out of its multi-decade long economic malaise. As Japanese Prime Minister Warns of “Lehman-Style Crisis,” Is He Looking At Correlation or Causation? Prime Minister Abe’s fiscal package amounts to ¥28 trillion (Abe has said ¥27 to ¥28 trillion) or around 6% of GDP, which sounds chunky, but according to Frederic Neumann, co-head of Asian Economics Research at HSBC the actual economic impact felt from the spending is bound to be smaller and weaker than the headline figure. Forget Japan’s stimulus…